Kivalliq Energy – KIV.V made it into my portfolio today. The stock built a bullish ascending triangle and looking at today’s price action I couldn’t have asked for more. What’s even more important though is the fact the stock broke out on high volume. During big price advances you want volume to confirm price. That’s exactly what we got today. Technically speaking everything is looking good as KIV.V – Kivalliq Energy meets the following three criteria:
- The stock is acting as expected.
- The stock is trading at an all time high.
- After I put on the trade the stock almost immediately went my way. Great trades work right away as the saying goes.
The other criteria I am looking for when searching for stellar performers are met as well:
- Rather long base.
- Game changing news / fundamentals.
- Abnormal volume surge.
- Gap up.
- Thrusting move.
- Consolidation pattern. Preferably an ascending triangle.
- Story stock potential.
- Potential to attract the momentum trader crowd.
- Market capitalization that leaves a lot of room for additional price appreciation.
A few other things that make KIV.V – Kivalliq Energy a very interesting play and a high potential stock are the following:
- First mover advantage with exclusive rights to explore land owned by the Inuit of Nunavut.
- Financial backing of one of the world’s top mining industry financier: Ross Beaty’s Lumina Capital invests in KIV.V
Ross Beaty needs no introduction, he is a perfect example of success and one of the best known mining entrepreneurs. As long as you can get in close to their entry price it usually pays to follow smart money. Following Ross Beaty with my VEN.TO – Ventana Gold is a trade I did last year where this strategy paid off.
Up-to-date KIV-V – Kivalliq Energy chart on my public list.
As I have previously written in my post about Uranium Mining Stocks, something you definitely have to keep a close eye on is the price of Uranium. U.TO – Uranium Participation is a great proxy to monitor Uranium prices. As of yet the weekly moving average 30 Stan Weinstein uses is still pointing down and there are no signs of price reversing anytime soon. This is a sign one still needs to be very cautious going long Uranium stocks. If you check my second Uranium Sector overview Chart though, you will notice some stocks have already started decoupling from their underlying and moved up significantly. The one’s that come to mind are:
- KIV.V – Kivalliq Energy
- BSK.V – Blue Sky Uranium (another prominent Ross Beaty investment)
- FIS.V – Fission Energy
Here’s the U.TO – Uranium Participation chart in order to monitor the price of Uranium:
Up-to-date U.TO – Uranium Participation chart on my public list.
From KIV.V – Kivalliq’s website:
Kivalliq Energy Corporation is a uranium exploration and development company, and the first company in Canada to sign a landmark partnership with the Inuit of Nunavut to explore for uranium on Inuit Owned Lands in Nunavut. This has givenKivalliq a unique opportunity to explore and develop the historic Lac Cinquante deposit, Canada’s highest grade uranium deposit outside of the Athabasca Basin, reported to contain 20.4 million pounds of uranium oxide with grades in excess of 1% (not National Instrument 43-101 compliant). Additionally,Kivalliq’s 225,000 acre core asset Angilak property has over 150 other uranium occurrences.
The 2009 Drill Program at Lac Cinquante confirmed near surface, high grade intervals over significant widths and along approx. one kilometer of strike length. The deposit remains open along strike and at depth and continues to offer convincing potential for expansion during the 2010 exploration season.
Corporate Structure as of February 22, 2010:
Shares Outstanding: 51,712,744
Fully Diluted Shares Outstanding: 76,709,194
The following rule still applies: A strong stock with no overhead resistance is your best hedge as it can move up significantly even if the underlying commodity is moving sideways.
Do not go where the path may lead, go instead where there is no path and leave a trail. – Emerson
My public list with all my charts can be viewed here
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Have a great evening!
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